It seems BlockFi is the front runner. They seem to have partnerships with the major US crypto exchanges, e.g. Gemini and Coinbase (I am in the USA). I am also googling and trying to educate myself.
But, I have serious concerns about learning my crypto to 3rd parties. What happens if the institution that I loan to, for example BlockFi, goes brankrupt? I assume I will lose my crypto. Would it be safer to loan to an exchange and I don't run that risk?
Yes, there are lots of wallets that are doing that these days, almost all the wallets I am using are doing it and it’s not every cryptocurrency can make you the same interest, it varies for each cryptocurrencies and the most of them I have seen are giving around 4% interest for Bitcoin.
Blockchain wallet does that and for Bitcoin they are giving 4.4%, and the highest they give is when you hold stablecoins like Tether and USD Digital, those stablecoins are 12% annually. But the reason they are giving more for stablecoins is because of their stability, BTC, ETH and other non-stable coins can’t fetch you that much from them, since they already knows that these ones are volatile and can increase or decrease drastically.